The US has already announced defence cuts, while the UK announced yesterday it will slice 8% out of its defence budget.

Lockheed Martin share gained 0.8%, despite the company reporting a 28% decline in net profit (USD517 million) on a 6% increase in revenue. The company’s outlook is for 2011 sales growth at the “mid-single-digit” levels.

EADS shares were up 1.5%. The UK confirmed its commitment to the troubled A400M programme under the defence review.

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